PENSION CASH-IN 'PANIC' AT LABOUR BUDGET TAX RISES

Fears Britons are risking bad financial decisions in rush to plunder pension pots tax free

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RACHEL Reeves was accused of "undermining the economy" as savers pull cash from their pensions to avoid a feared £2billion tax raid.

Investment companies have reported a rise in tax-free withdrawals as those close to retirement plunder their pots before her October 30 Budget.

Financial experts are now warning investors withdrawing savings in a panic that it is "not in their best interests" and may jeopardise their retirement.

Michael Summersgill, chief executive of AJ Bell, said the Government had created "unhelpful uncertainty" that prompted the dash for cash.

He added that the company had also seen an increase in payments from younger investors fearing higher rate tax relief on contributions would be scrapped under Sir Keir Starmer's Government.

Mr Summersgill said: "Pensions are the primary retirement savings vehicle in the UK and customers are unsurprisingly sensitive to changes in their tax treatment.

"We have seen a noticeable change in both customer contributions to pensions and tax-free cash withdrawals. These behavioural changes represent significant decisions for individual customers.

"We have therefore made representations to the Treasury calling for a commitment to a pension tax lock in the Budget, guaranteeing stability in key pension tax legislation for at least this parliament.